Supporting the Community

ENVIRONMENTAL, SOCIAL AND GOVERNANCE

As a frontrunner in the gaming and entertainment industry, Galaxy Entertainment Group (“GEG” or “the Group”) is proud of its record of achieving sustainable business growth and sustained value for its customers, employees, and the society in which it operates. Recognizing the importance of giving back to the community, GEG continues to be a proud supporter of the Macau Special Administrative Region (“SAR”) Government’s social programs and initiatives.

Following its vision to becoming Asia’s leading gaming and entertainment corporation, GEG continues to invest wisely in social development, talent management, environmental conservation and resource and supply chain management.

STAKEHOLDER ENGAGEMENT AND MATERIALITY ASSESSMENT

GEG engages stakeholders through a variety of channels on an ongoing basis to hear their views on ESG issues which are important to them and how they would like to see them addressed.

To achieve an unbiased and fair stakeholder engagement process, GEG engaged an independent third party consultant to facilitate the engagement exercise. The stakeholder engagement covered employees, and business partners (including suppliers, contractors and service providers), industry associations, non-governmental organizations, media and charitable organizations. These stakeholders were invited to complete an online survey to rate the importance of sustainability issues to themselves.

Over 500 responses were collected. The results were analyzed based on a quantitative method for materiality assessment. The results indicated that, in general, stakeholders were satisfied with GEG’s sustainability initiatives and performance. The ESG issues deemed key by stakeholders included anti-corruption and internal controls on money laundering, customer privacy, and customer health and safety. These topics are explained in more details in the relevant sections of this report.

SOCIAL RESPONSIBILITY

Contribution to Community

As an accountable and proactive member of the Macau community, GEG is fully committed to making positive contributions to help the underprivileged and those in need.

True to its philosophy of “what is taken from the community is to be used for the good of the community,” during 2017, more than 800 GEG volunteers participated in over 40 activities and contributed to over 2,240 hours to community services. GEG has organized more than 160 activities that have benefited over 120 charitable organizations, with over 9,450 hours of community service incurred since the launch of the GEG Volunteer Team in 2011.

GEG’s advocacy to support and care for the community is further accentuated by the Group’s immense relief efforts to contribute to the recovery of Macau from natural disasters.

On August 23, 2017, Typhoon Hato, the most powerful and destructive typhoon in the past half century struck Macau. A typhoon of this magnitude had a major economic and social impact to Macau. The storm forced many businesses to close parts of their business and left city streets littered with debris and smashed windows from homes and buildings. Moreover, thousands of residents were without electricity and running water, which also included many GEG’s very own team members. Four days later on August 27, 2017, Typhoon Pakhar also hit Macau in the midst of its recovery from Typhoon Hato. While Pakhar’s impact was much less, it severely hindered local recovery efforts.

In response to this calamity, GEG promptly responded through launching a series of initiatives to assist the local community, some of which are listed below:

Directed a team of GEG volunteers to visit the worst-affected areas in an effort to aid and distribute food and bottled water as well as to support the immediate needs of the community on the first day after Typhoon Hato had struck;

Pledged a MOP60 million contribution, including MOP30 million from Galaxy Entertainment Group Foundation and a MOP30 million matching contribution from the Lui Che Woo Foundation to support the relief efforts of the Macau community and GEG team members during this stressful and catastrophic period; and

Contributed to the local relief efforts by deploying trucks to assist with debris removal, and continually sending out GEG volunteers to help restore the Macau community through various clean-up efforts, delivery and distribution of food, water and other immediate needs.

Since these typhoon incidents, Galaxy Entertainment Group Foundation has provided funding assistance to over 20 nonprofit organizations and social service groups in Macau, including the Macau Red Cross, the Macau Special Olympics, Caritas de Macau, the Fuhong Society of Macau, the General Union of Neighborhood Association of Macao, the Macau Federation of Trade Unions, the Women’s General Association of Macau, etc., and other non-profit organizations and schools referred respectively by the Social Welfare Bureau and Education and Youth Affairs Bureau. In addition, close to 2,000 Typhoon Financial Assistance applications from team members were also received and approved.

Galaxy Entertainment Group Foundation

Through its corporate social responsibilities initiatives, GEG believes in tackling emerging social issues in helping our next generation to build a brighter future. In April 2015, GEG established the Galaxy Entertainment Group Foundation (“Foundation”) to give back to Macau and the Greater China Region. The Foundation focuses on philanthropic activities which nurture young people, enabling them to become responsible citizens in their communities.

In 2017, the Foundation approved the GEG Sign Bilingualism Co-enrolment Pilot Scheme to be trialed at one creche and one kindergarten in Macau. The Scheme will, in 2018, co-enroll hearing-impaired children in inclusive classrooms co-taught by a teacher and a deaf teaching assistant, enabling deaf and hearing children to learn together with both spoken and sign languages. Under co-enrolment, hearing-impaired children will be able to build up a solid language foundation through using sign language, which in turn will enhance their overall literacy and language ability. Hearing children in the class are also expected to benefit as their early language development will be enhanced through learning sign language, while developing increased empathy for the less fortunate.

The “GEG Chinese Literacy Development Pilot Scheme” was launched in 2016. Assessments for almost 1,000 children from K1-3 at the Scheme’s two seed schools were conducted in 2017 to develop a language corpus for the schools and identify students who are at risk of having language and literacy problems. Teachers at the two seed schools who had undergone advanced training had begun group intervention for at-risk K3 students. A series of age-specific Parent Seminars focused on helping parents understand how they can play a role in building their child’s language skills outside of the classroom are also being conducted.

Education and Culture

GEG continued to support Macau SAR Government’s programs and policies on youth and talent development by working with various parties to empower through learning and education. Key initiatives taken by GEG during 2017 include:

Sponsored a seven-day Asian City Study Tour to Seoul, South Korea for winners of the “6th GEG Youth Achievement Program” Final Competition;

Organized a GEG Internship Program Appreciation Gathering to commemorate the achievements of interns who completed their internships in the first half of 2017;

Organized seminars on “Strategic Management” and “Data Analysis and Business Problem Solving” for Hotel and Housekeeping students of the University of Macau; and

Assisted students from the Institute for Tourism Studies in organizing a fundraising dinner for ANIMA, during which a number of the institutes’ Culinary Arts Management students got the opportunity to work with Galaxy Macau Chefs in preparing the event’s dishes for guests and donors.

Charitable Activities

Driven by its corporate citizenship goal, GEG continues to maintain partnership with Macau’s various organizations as a means of community involvement. In 2017, GEG offered support to various charity groups, including but not limited to the following (in alphabetical order):

ANIMA

Caritas Macau

Charity Fund from the Readers of Macao Daily News

General Union of Neighborhood Associations of Macau

Macau Holy House of Mercy

Macau Special Olympics

Macau Tung Sin Tong Charitable Society

Orbis Macau

World Wide Fund for Nature Hong Kong

Sports Development

In advocating a healthier and better quality of life, GEG has been working closely with the Macau SAR Government and the local community on a number of initiatives. These initiatives are focused on enhancing cultural diversity, tourism, sports development as well as social harmony within the city.

GEG has supported Macau’s various sports and community events during 2017, including:

Title sponsored the “FIVB Volleyball World Grand Prix™ Macau” for the 12th year;

Title sponsored the “Macau Galaxy Entertainment International Marathon” for the 14th consecutive year with over 900 GEG team members taking part;

Celebrated the 7th consecutive year as title sponsor for the “2017 Galaxy Entertainment Special Olympics Table Tennis Competition” for intellectually handicapped persons to strengthen their physical fitness, skills and relationships through sport; and

Sponsored the “Macau Special Olympics Golf Masters”, which is the world’s largest golf tournament for special needs athletes and which promotes and encourages social acceptance of persons with disabilities.

COMPLIANCE WITH LAWS AND REGULATIONS

GEG operates in strict compliance with the rules and regulations of the Macau SAR Government and the Hong Kong SAR Government. Policies and procedures including a Code of Conduct have been put in place to ensure that GEG operates with high integrity and business ethics.

Anti-Money Laundering & Corruption

GEG applies a high ethical standard in conducting its business and has adopted industry good practices in anti-money laundering (“AML”), combating finance of terrorism (“CFT”), anti-bribery and anti-corruption. An Anti-Bribery and Anti-Corruption Policy is in place and provides team members with guidance on how to handle business dealings with government officials and other individuals and entities. Any form of payment, gift or offer in the form of a bribe or corrupt act under respective laws and regulations are strictly prohibited.

GEG’s policies and procedures are conveyed to all team members through various internal channels. Our commitment in acting with high integrity and honesty are extended to our business partners. GEG obliges team members and independent third parties who work on its behalf to undertake due diligence investigation on its business partners, to ensure full compliance with the AML and CFT Policy approved by the Macau Gaming Inspection and Coordination Bureau.

In addition, GEG conducts training and workshops regularly to team members in an effort to educate and keep them updated with the latest regulatory developments. Such training is mandatory for all team members who are encouraged to report identified or suspected non-compliance and misconduct, including suspicious financial activities and transactions, to relevant departments, in accordance with standard operating procedures. Examples of the training courses arranged by GEG during 2017 include:

AML and CFT Compliance Program workshops for new hires and targeted team members as an annual refresher and ad-hoc training; and

GEG safeguards intellectual property rights and personal data. In full compliance with the Personal Data (Privacy) Ordinance of the Hong Kong SAR and the Personal Data Protection Act of Macau SAR, GEG utilizes different contractual vehicles such as confidentiality agreements and mutual non-disclosure agreements to protect intellectual property rights and confidential information from loss, leakage and misuse.

No court proceedings concerning corruption, money laundering or infringement of intellectual property or personal privacy were brought against GEG or any of its team members during the reporting period.

TEAM MEMBERS ENGAGEMENT

Diversity

As an employer that embraces inclusivity and equal opportunity, GEG places great importance in ensuring that diversity in gender, age, qualifications and experiences is met throughout the recruitment process. GEG boasts a balanced and dynamic team, a majority of which are 30 years old or above and who are both skilled and experienced.

Working Environment

GEG endeavors to promote a healthy work-life balance and create a supportive and comfortable workplace for all team members. Positioning itself as a family-friendly employer, GEG offers a flexible work plan that enables team members to reduce their working hours so that they work and develop their careers while reserving more time to spend with their family. In addition, the Group has also set up breastfeeding facilities at Galaxy Macau, Broadway Macau™ and StarWorld Hotel that provides a private, safe, comfortable and hygienic area for nursing mothers who have returned to work, to fulfill their aim of supporting their child and family. Other highlights of GEG’s initiatives in 2017 include:

Receiving a “Family-Friendly” Employer Award from the Women’s General Association of Macau;

Hosting a “GEG Professional Development Recognition Ceremony” to celebrate the achievements of over 1,500 team members who participated in the 2016/2017 GEG Leaders Program, GEG Management Skills Program and GEG Sales Program;

Hosting and organizing “Galaxy Got Talent 2017” to showcase team members’ talents, promote teamwork, and foster a sense of belonging; and

Organizing the fourth GEG Staff Social Club “Annual CNY Soccer Fun Day” to cultivate camaraderie between teams and to bring families and friends together.

Labor Standards

GEG recognizes people as its most important assets. With robust policies and procedures in place, GEG requires strict compliance with relevant rules and regulations as set out in the “Labor Relations Law” and “Labor Legislation” of the Labor Affairs Bureau of the Macau SAR Government and the Labor Department of the Hong Kong SAR Government, respectively. In addition, GEG aims to go beyond minimum government requirements to build a positive and supportive workplace for its team members, by providing benefits and support such as early leave options, training allowance and bereavement leave.

Examples of ongoing/new arrangements and initiatives in 2017 are:

Employee Assistance Program for supporting the team members for work or personal problems that impact their job performance, health, emotional and mental well-being;

Medical Benefits coverage;

Grievance Policy and Process;

Promotions and Transfer Policy;

Flexible work plans and other employment arrangements to suit the work and family commitment of the team member and business; and

Breastfeeding facilities in workplace.

Additionally, GEG celebrates the success of team members who exhibit outstanding performance beyond their call of duty, through “Star of the Month”, “Star of the Quarter” and “Star of the Year” programs.

Team Member Health and Safety

Occupational health and safety is a top priority of the Group. Safety procedures and controls at GEG have been established based on an operational risk-based assessment and are in full compliance with relevant laws and regulations. In particular, the safety management system in one of the Group’s properties, Galaxy Macau, has been established in accordance with Factories and Industrial Undertakings (Safety Management) Regulation and has achieved the OHSAS 18001 Certification by British Standards Institution (BSI) since 2015.

Furthermore, work-related safety performance including accidents, injuries and near-misses are monitored and reported by GEG to drive continuous improvement in health and safety practices.

Talent Management

The Group provides training and development opportunities that support team members to achieve both vertical and lateral career paths. Our talent development focuses on diversifying local team members’ skills and knowledge to support a diversified business, Macau economy and community.

Organization Development and Training initiatives engage and support the promotion and delivery of the Group’s Mission, Vision and core values. Our team members’ success in delivering service that stands out from the rest provides the very foundation of our achievements for all of its properties.

Our Organizational Development & Training strategy focuses on:

Stakeholder Engagement – continuous partnership and engagement with customers, leaders, team members and the community to ensure the achievement of mutually beneficial outcomes for all.

Capability Development – building the capabilities of our team members in a structured, pragmatic and timely manner through a blend of world class on and off the job learning experiences and activities.

Training & Learning Innovation – investing in the right technologies and leveraging the appropriate delivery channels including blended and e-learning to ensure broadened access and maximum learning impact on team member development and business outcomes.

Workforce Agility – preparing our workforce to support existing and future business needs and growth by development programs that respond to employee and business requirements and promoting progressive career development and growth opportunities for local team members.

Organization Development and Training has developed a substantial training curriculum designed to be delivered through a range of learning methods and in 2017 provided the following development initiatives:

Core Foundation Programs that are anchored in the Group’s Mission, Vision and Values to ensure complete alignment of knowledge and skills GEG wide.

Supervisory, Manager & Leadership Programs that assist team members in their careers to becomes highly competent Supervisors, Managers and Leaders. These programs develop GEG core leadership competencies and shape the company culture.

Governance Programs that support the social development of Macau and corporate governance of GEG. These are compulsory for all targeted team members and include Responsible Gaming Program, Anti-Money Laundering, Combating the Finance of Terrorism, Information Management Awareness Program, Payment Card Data Security & Health & Safety.

Gaming & Hospitality Operations and Job Skills Programs that are conducted through internal & external training events including guest service and sales programs to enable team members to obtain the essential knowledge, skills and competencies required for their role.

Talent Management Programs that focus on the vertical and horizontal progression of local team members. They support team members to transit careers from Gaming to Non-Gaming operations and support the development of upward movement of local team members into management and leadership positions.

GUEST ENGAGEMENT

Aspiring to be a leader in the gaming and entertainment industry, GEG operates by its “World Class, Asian Heart” service philosophy. Acting with a deep personal respect for every individual that connects with the Company, GEG has consistently outperformed and led the market in Macau by anticipating customer needs, committing itself to doing its best, delivering exceptional experiences to guests, and acting with prudence, efficiency, integrity and a sense of urgency.

GEG follows closely its internal policies and relevant rules and regulations particularly those related to customer health and safety. In addition, GEG adopts a variety of channels to proactively seek feedback and collect suggestions from its guests to enhance service quality. Examples include:

Encouraging customer feedback and rating through various channels such as comment cards, e-mails and various social media platforms;

Implementing mystery shopping as a tactic to evaluate service quality and gauge customer satisfactory, and to assess compliance with laws and procedures and the overall consumer experience at all GEG properties; and

Setting up hotlines and appointing quality assurance managers to monitor and address possible guest enquires and complaints in a timely manner.

Customer Health and Safety

To protect the health and safety of customers and uphold the quality of its products and services, GEG has implemented a robust quality mechanism including policies, procedures and standards, specifically relating to quality management. These requirements are communicated to and followed by all team members and all independent third parties who work on GEG’s behalf.

In light of the gunman attack in Resort World Manila which happened in June 2017 and the shooter incident at Las Vegas in October 2017, GEG partnered with the Macau SAR Government in planning and conducting Macau’s first large-scale, joint contingency drill at Galaxy Macau in the early hours on January 23, 2018. Code-named “Wolf Hunting”, the exercise was conducted as part of the Macau SAR Government’s efforts to strengthen the coordination between public departments and the city’s gaming operators, as well as to optimize the response measures in case of unexpected incidents in casinos such to guarantee the safety of residents, tourists and their respective property. A total of 350 personnel (including over 100 GEG team members), participated in the exercise, which simulated an armed robbery in a Galaxy Macau public area, with four criminals who attacked a passer-by before escaping into a crowded hotel lobby where they held people hostage, issued a bomb treat, and simulated multiple injuries.

SUPPLIER MANAGEMENT

One of GEG’s key goals is to deliver sustainable value to its stakeholders. To achieve this, GEG has put in place robust protocols and procedures to ensure that it sources goods and services responsibly and in compliance with relevant laws and regulations, including those on bribery prevention. All team members are encouraged and tasked to report any possible corruption offences to Macau’s Commission Against Corruption (“CCAC”). Suppliers are requested to declare any conflicts of interest.

To work collectively with the suppliers in driving sustainable growth, GEG prefers to work with suppliers that:

Achieve or exceed all relevant legal obligations and codes of practice.

GEG reviews the performance of its suppliers on a regular basis and requires its suppliers and service providers to adhere to Macau’s laws and regulations including those related to occupational health and safety when entering GEG’s properties. Additionally, to protect their customer’s well-being, the Group undertakes meticulous measures to ensure the safety of the products and services at source. Recently, GEG added a new criterion to measure the safety performance rating and environmental performance rating of individual vendors, and include it as part of the vendor performance appraisal process for food and beverage, products and services vendors.

To support local economic growth and the Macau SAR Government’s policy on nurturing the development of local small and medium-sized enterprises (“SMEs”), GEG prioritizes local SMEs in its procurement process. Under the approach of “large businesses leading small businesses for sharing of economic success”, GEG has been operating a Local SME Partnership Program since last year. The program aims to provide opportunities for local SMEs to upscale their business through collaboration with GEG. Other achievements during 2017 include:

Over 280 SMEs, Made in Macau, and Young Entrepreneurs suppliers have become registered vendors with GEG and the number keeps increasing;

Implementation of “ChoicePro”, a mobile application developed by the Macau Productivity and Technology Transfer Center (“CPTTM”) for tendering management to allow SMEs to explore business opportunities;

Development and provision of the SME Promotion Scheme to GEG team members where over 40 SMEs participated with discount promotions extended to over 20,000 team members; and

Launch of the Supplier Development Program, which is currently in progress in helping the Group’s SME partners improve their supply chain strategy and network design, demand management, quality assurance, product range, product competitiveness, and performance management, etc.